ECONOMY

Fitch downgrades ratings of four Greek banks

Fitch Ratings downgraded four Greek banks’ long-term issuer default ratings (IDR) to ‘CCC’ from ‘B-‘ on Wednesday, following the downgrade of the country’s sovereign rating last week.

The downgrade reflected Greece’s weaker economic prospects, which put the banks’ asset quality and solvency at further material risk, the ratings agency said.

Fitch downgraded long-term IDRs and viability ratings of National Bank of Greece SA, Piraeus Bank SA, Eurobank Ergasias SA and Alpha Bank AE.

The downgrades also reflect pressures on the banks’ funding and liquidity, Fitch said, adding that it expects deposit outflows to continue until a compromise deal is reached between Greece and its creditors.

Fitch on Friday cut Greece’s credit rating to ‘CCC’ from ‘B’, saying a lack of market access, tight liquidity and uncertainty over the timely release of aid from official creditors was exerting pressure on government funding.

[Reuters]